Zambia with its neighbouring countries make up a fast-growing agricultural region with low but increasing fertilizer application rates, and Yara expect continued fertilizer demand growth in the region.

Greenbelt started operations in Zambia in 2004 and has become a leading fertilizer distributor in Zambia, Malawi and Mozambique, with sales of 80 kilotons and an EBITDA of USD 5 million in the fiscal year ending 31 March 2015. Greenbelt owns three blending plants and three warehouses. The transaction value includes net working capital of USD 32 million.

"This acquisition re-confirms Yara's long-term commitment to Africa. Greenbelt fits well with Yara and will further improve our downstream position within a fast-growing agricultural region," said Terje Knutsen, Head of Downstream.

The transaction is expected to close in first quarter 2016, subject to competition authority approval and other customary closing conditions.